Today's trading update warned market conditions "remain challenging."
Companies: Topps Tiles Plc
Topps Tiles' (LON: TPT) trading update this morning outlined the Group's performance for the year to 30 September, with figures all slightly down on the previous year.
With the Group's final results due at the end of November, Revenues for FY17 are "expected to be in the region of £211.6m", down from the reported £215m in FY16. Like-for-like revenues in the 52 weeks also decreased 2.9% on the prior year (FY16 +4.2%).
Management went on to say that while there has been "moderate improvement" in Q4 trading...
"Market conditions remain challenging, and the Group expects adjusted pre-tax profits for the 52 week period ended 30 September 2017 will be at the lower end of the current range of market expectations."
Group CEO Matthew Williams added:
"The tougher market conditions we first highlighted in Q2 continued into the final quarter and, as a result, we are taking a prudent view on market conditions for the year ahead."
At the time of writing, shares were down 3% to 72p.
As a result of the Group's FY17 performance, Liberum has downgraded their forecasts for FY18 and beyond, saying in their research note today...
"We hold our current year estimates unchanged, while prudently lowering outer years by 9-10% given the continued cautious outlook."
New PBT forecasts are now 9.4% and 9.9% lower than previously forecast for FY18 and FY19 respectively.
TPT currently trades with a Market Cap of c. £143m and a PE ratio of 9x versus the industry median of 14x.